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Accountancy for Class XII - Accounting for Share Capital

Class XII
Accountancy
Accounting for Share Capital
13 questions
MEDIUM

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Preview questions

1. What is the primary purpose of issuing shares?

To raise funds for business expansion · To pay off debts · To increase employee benefits · To reduce tax liability

2. Which type of share does not carry voting rights?

Equity Shares · Preference Shares · Debentures · Bonus Shares

3. What is the maximum limit for issuing shares at a premium according to the Companies Act?

No limit · Only 10% of the face value · The amount prescribed by the company · The amount determined by the board

4. What is the term for the amount received by a company in excess of the face value of shares?

Share Capital · Share Premium · Retained Earnings · Dividend

5. Which account is debited when shares are issued at a premium?

Share Capital Account · Share Premium Account · Bank Account · Profit and Loss Account